What has this meant for the British pound? The sterling soared to a 12- year high at $1.91 in February 2004, driven in part by aggressive BOE rate hikes and the positive interest rate differentials those hikes created for the currency.

However, since February, the pound-dollar rate has formed a triangular consolidation pattern on the weekly chart with the most recent swing-high resistance around $1.87 and swing-low support around $1.77. As of mid-November, the pound had edged toward the upper end of that range and is poised to test resistance at the $1.87 area.